By the Numbers: Iowa is among 29 states that retain personal income tax exemptions

Twenty-nine states, including Iowa, maintain personal income tax exemptions, even though the 2017 Tax Cuts and Jobs Act suspended such exemptions at the federal level, according to a Tax Foundation analysis.

In the wake of the 2017 federal reforms, six states – Idaho, Utah, Colorado, New Mexico, North Dakota and Missouri – eliminated their personal exemptions for income taxes, the Tax Foundation study found. Such conformity efforts simplify tax-preparation requirements and reduce the chances of ambiguities and complexities.

Iowa’s current personal exemptions are state-defined deductions or credits.

Personal tax exemptions are those amounts the taxpayer can deduct from their income on a return – either for themselves or their dependents. The federal tax reforms ended them through 2025, opting instead to nearly double the standard deduction, according to the analysis.